Ask Andi: I’m an entrepreneur spread too thin. We short-staff to save money. I spend time coordinating jobs but need to focus on sales so we have enough work later in the year. I’m doing too much, and my stress level is way up. Help!
Thoughts of the Day: Are you spread too thin? A common problem in SMBs (Small to Medium-sized Businesses) is getting spread too thin. Owners are resourceful and willing to pitch in wherever they’re needed. That’s good in the beginning when things are getting off the ground. Long term it’s bad, getting in the way of finding and filling the holes.
Entrepreneurs spread too thin
SMBs – Small to Medium-sized Businesses – start out needing people who can multi-task. Each job is not big enough to require full-time staff. The owner is usually the one to first learn the multi-tasking skill.
The downside is that an owner ties up in details chasing problems needs time to measure, manage and plan. For one month the owner focuses on sales. The next month sales are up, the owner jumps into operations, and sales lose momentum. It becomes almost impossible to establish a steady constant flow in either area. Cash flow problems crop up. The stress and strain of constantly changing focus and playing defense start to wear on the multi-tasking owner.
Every business owner needs to learn how to step back and focus on the long-term growth and development of the business. Require new skills as the business grows, and jobs become more demanding and take more time. The game shifts from multi-tasking to specialization. Owners, people in the field, people in the office, all have to focus on what they’re good at and hire and train replacements for the things they give up. Think about how to reorganize so people can report on what they’re doing and you can run the business.
Certain areas of the business will benefit from specialization sooner rather than later. Sales are one of those disciplines that will benefit from having dedicated staff, working on a plan. The owner has to decide if sales is an area s/he plans to specialize in or hire someone who will. That decision has to be based on a realistic assessment of the owner’s skills in sales.
Each of us has the same 24 hours per day
Many entrepreneurs are really good at sales and should keep on selling. Others end up in sales because no one else is willing to do the job, or because no one else can speak to prospects as passionately about the business. That’s not necessarily the right reason for putting the owner front and center in sales.
Prioritize growing sales in order to make more money. Hire people who are skilled at identifying leads and closing on opportunities. People who can work with the owner. Learn about the business. And apply their selling skills to growing the company.
As sales rise, build up staff in operations and administration. Put someone in charge. If you can’t afford a full-time operations manager, consider hiring someone who can be a working supervisor.
Whoever ends up doing sales, operations, and every other part of the business. Make sure that there are weekly, monthly, quarterly and annual goals, reports, and meetings. Measure results in both quantity and dollar value. Be sure that the company has enough selling activity to keep sales growing. In operations set standards for lead times, customer satisfaction, and inventory levels. Teach people to assess performance against standards.
Free up the owner. Put more time into planning, evaluating, and charting a growth path for the business. Pull back from daily responsibilities. Read reports. Gather data on the company’s overall performance. Make decisions on where to go next.
